Financial Planning

Investment Calculator

See how a fixed deposit, PPF, EPF or any compounding investment grows, lump sum or yearly contributions, with a year-wise breakup.

Set up your investment

Pick a preset to load typical rates, or choose Custom and set everything yourself.

Preset Indicative rates, FY 2025-26

Investment mode

One-time investment ₹1,000 – ₹1Cr

₹

₹1,000₹1Cr

Interest rate 1% – 20%

% p.a.

1%20%

Time period 1 – 40 years

years

1 yr40 yrs

Compounding frequency

FD note: Bank FD rates vary by bank, tenure and depositor age, 6.8% with quarterly compounding is a typical big-bank rate, and senior citizens usually earn ~0.5% extra. FD interest is fully taxable at your slab, with TDS under Sec 194A once interest crosses ₹50,000 a year (₹1,00,000 for senior citizens).

Your maturity value

Compounded quarterly at 6.8% p.a.

Maturity Value ₹0 after 5 years

Total invested ₹0

Interest earned ₹0

Maturity value ₹0

Amount invested Interest earned

Year-wise growth

Opening balance, deposits and interest credited each year.

Year	Opening	Deposit	Interest	Closing

For guidance only, consult Taxopd before acting. Preset rates are indicative; PPF and EPF rates are notified by the government and reset periodically, and bank FD rates differ by bank and tenure.

How it works

Compound interest, demystified

Interest that itself earns interest, the frequency of compounding and the length of time do most of the work.

The formula

For a one-time lump sum, the maturity value follows the standard compound-interest equation:

A = P × (1 + r/m)^m×t
where P = amount invested, r = annual rate, m = compounding periods per year, and t = years.

For yearly contributions (like PPF), each deposit is added at the start of the year and the whole balance then grows by the year's effective factor f = (1 + r/m)^m. The calculator runs this loop year by year, exactly what feeds the table and chart above.

More frequent compounding lifts the effective annual yield: 6.8% compounded quarterly is an effective ~6.975% per year, which is why banks quote both "rate" and "annualised yield" on FD leaflets.

Worked examples

Investment	Invested	Maturity
FD, ₹2,00,000 @ 6.8%, quarterly, 5 yrs	₹2,00,000	₹2,80,188
PPF, ₹1,50,000/yr @ 7.1%, 15 yrs	₹22,50,000	₹40,68,209

The FD earns ₹80,188 of interest in five years. The PPF investor deposits ₹22.5 lakh over fifteen years and collects about ₹18.2 lakh of entirely tax-free interest on top, the long runway and yearly compounding turn a modest 7.1% into serious wealth. Note the contrast: FD interest is taxed at your slab every year, while PPF interest is exempt, so the post-tax gap is even wider than it looks.

FAQs

Common questions

Yes, though the effect is modest at typical deposit rates. ₹10 lakh at 7% for 10 years matures at about ₹19.67L with yearly compounding versus ₹20.10L with monthly, roughly ₹43,000 more. The higher the rate and the longer the tenure, the bigger the gap, so always compare deposits on their effective annual yield rather than the headline rate.

The Sec 80C deduction for the deposit is available only under the old regime, but the other two exemptions, tax-free interest and tax-free maturity, apply to everyone regardless of regime. A government-guaranteed ~7.1% that is entirely tax-free still beats the post-tax return of most FDs for anyone in the 20–30% slab, though the 15-year lock-in means it suits long goals, not emergency funds.

FD interest is added to your income and taxed at your slab rate every year on an accrual basis, even for cumulative FDs where you receive it only at maturity. Banks deduct 10% TDS under Sec 194A once your interest across their branches exceeds ₹50,000 in a year (₹1,00,000 for senior citizens) for FY 2025-26. If your total income is below the taxable limit, filing Form 15G/15H stops the deduction.

Figures on this page are illustrations based on the rates you enter and current small-savings rates, which change periodically. For guidance only, consult Taxopd before acting.